Vedanta Promises $1 billion investment, $220 million for Suppliers and 20% Salary hike across the board on return to KCM

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Vedanta Promises $1 billion investment, $220 million for Suppliers and 20% Salary hike across the board on return to KCM
Vedanta Promises $1 billion investment, $220 million for Suppliers and 20% Salary hike across the board on return to KCM

Africa-Press – Zambia. Vedanta Resources Limited, the company that used to run Konkola Copper Mines (KCM) has said that it was allowed to resume running the mine again, it is committed to investing a USD 1 billion towards capital mine development and other infrastructure to increase KCM’s integrated production from the current 50kt to 100kt per annum, and a further potential increase to 200ktpa in the medium-term.

In a letter addressed to President Hakainde Hichilema, Finance Minister Situmebeko Musokotwane and a number of other stakeholders including the Mine Workers Union of Zambia by the Group CEO, Sunil Duggal , the company said further said that it commits that upon return it shall implement a 20% salary the increase across the board and a one-off payment of K2 500 within 3 months of the return that after the technical forensic audit of KCM has been completed, and that it shall again review the workers’ conditions of service to ascertain whether there could be room for further adjustments.

The company also proposed to support hospitals, clinics, and schools, provide scholarships, and livestock, and promote youth development programs, training and sports development including football sponsorship, adding that these programmes shall be established by a Special Purpose Community Trust which will be managed jointly by the mine and community.

Vedanta also said that it is committed to paying KCM suppliers (specifically small suppliers) up to USD 220 million which was due as on 21 May 2019 when the Provisional Liquidator was appointed, adding that it is the intention of Vedanta to ensure that Zambian small businesses are prioritised in its supply chain.

The company also said that KCM will put in place a procurement program that, having identified appropriate Zambian small businesses, will avail them with support and medium-term contracts so that they can grow with KCM.

The company concluded in the letter by stating that it looked forward to engaging will the Government of Zambia, ZCCM IH and all other relevant stakeholders on the conditions of Vedanta’s return to KCM.

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